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Finance Dept pours cold water on Govt election claim

ELEANOR HALL: The Finance Department says a Coalition election promise to save $5.2 billion through a staffing freeze on the public service is unachievable.

The matter's been the topic of heated discussion at a Senate Estimates hearing today.

As Lexi Metherell reports, the Government's revealed it's now halted plans to shed 12,000 public servants.

LEXI METHERELL: The Government has announced it's put on ice plans to cut the public service by 12,000 people, as promised.

The reason, it says, is that it's found out Labor had a secret plan to cut 14,500 jobs.

That figure was calculated by the Finance Department during the caretaker period ahead of the election, as the Secretary of the Department, David Tune, today told Labor Senator Penny Wong in the Senate Estimates hearing.

PENNY WONG: You've given evidence today that you sat down to do this in the caretaker period, is that right?

DAVID TUNE: Correct.

PENNY WONG: So you hadn't done it before in totality?

DAVID TUNE: No. Not in the detail we did it in the caretaker period.

LEXI METHERELL: At the hearing, Senator Wong put to David Tune that it's long been clear the former government had a program to reduce the size of the public service.

PENNY WONG: So all of these were announced in published statements by the former government?

DAVID TUNE: Correct.

PENNY WONG: It's not very secret is it?

DAVID TUNE: Well the analysis that's done further was following the election campaign being called, when we sat down in the caretaker period and started to think through the implications of the various changes I've just described.

PENNY WONG: Sure.

DAVID TUNE: Plus, what else was in the base.

LEXI METHERELL: The Coalition had pledged to reduce the public service head count by 12,000 employees through natural attrition.

That is by not replacing people when they leave rather than sacking them.

It said that would save $5.2 billion.

But under questioning from Senator Wong, David Tune indicated that's not possible.

PENNY WONG: Given the advice that you have provided the government which has now been made public, it would not be possible to achieve $5.2 billion through a staffing freeze, a recruitment freeze alone?

DAVID TUNE: Um, no.

PENNY WONG: Thank you.

LEXI METHERELL: It was all the evidence Senator Wong needed to attack the Finance Minister Mathias Cormann.

PENNY WONG: You are setting to break your election commitments and this is all a political game to try and blame the Opposition. And no amount of you repeating your grabs from the table will hide it.

MATHIAS CORMANN: We are making responsible decisions in the context of the circumstance we found after the election, material elements of which were not disclosed before the election. That is what you would expect a responsible government to do.

LEXI METHERELL: The Minister couldn't say whether the Government will exclude defence and security agencies from future budget cuts as promised.

MATHIAS CORMANN: Given the impact of previously undisclosed, but now revealed, decisions initiated by the former Government before the election, we're currently reconsidering our approach to this policy and we will consider in particular the advice from the commission of audit.

He asked the postal services managing director, Ahmed Fahour, if he was examining the proposal.

And he indicated he's keen to expand Australia Post's job,

AHMED FAHOUR: I think it's a win-win here.

DOUG CAMERON: So explain win-win. So you're saying…

AHMED FAHOUR: Meaning there are some things that we're good at, and there are some things that other people are good at. And where there's a logical bit where we're good at something, and relevant, we will undertake it because we can deliver it more efficiently and effectively and support our 4,400 post offices to get it out into the community.

From the Archives

Sri Lanka is now taking stock of the country's 26-year-long civil war, in which the UN estimates as many as 40,000 Tamil civilians may have been killed. This report by the ABC's Alexander McLeod in 1983 looks at the origins of the conflict as it was just beginning.